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Thai Government `Errors' Spark Economic Contraction Warning.
Byline: Natalie Suwanprakorn
Nov. 9--Given the government's mistakes in assessing the domestic and global economies, Thailand's economy has worsened and will contract by between 1 percent and 2 percent next year, according to the Institute of Social and Economic Policies (Isep).
The institute, chaired by politician and businessman Pusana Premanoch, stresses that its prediction is optimistic.
Isep is the first institute to forecast an economic contraction for Thailand. The Bank of Thailand recently projected that the economy would grow by between 1 percent and 3 percent next year.
The institution based its forecast on an assessment that the world economy would stay flat or grow by up to 1 percent next year.
Somkiat Osothspa, the president of Isep, said that as the government had wrongly assessed the domestic and global economies, it had implemented the wrong policies in the first eight months of this year.
"It did not accelerate exports and ignored attracting foreign investment during the first eight months," he said.
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